Eric Peters, CEO of Coinbase Asset Management, says that crypto markets could explode in a way reminiscent of the 1700s South Sea Bubble.
In a new interview with Bankless, when asked about his price forecasts for Bitcoin (BTC), Ethereum (ETH) and other digital assets, Peter says it’s hard to assign exact valuation models to crypto.
[adinserter block="1"]Peters notes that with traditional commodities, a bump in price usually results in a bump in supply, which then balances out price.
However, with an asset like BTC, the Coinbase executive says that there’s no supply response, which in the future, when more institutional money is entering the market, could result in a massive bubble that takes Bitcoin to exponential prices.
“I think there’s a 25% probability – and by the way, that is, for what I’m about to say, is huge in my opinion – of something that is the South Sea Bubble-type move, where these frictions decline, these passive flows increase, into cryptos where there really isn’t a supply response.
Everything else that humans have ever invested in, if the price goes up, you create more of it. You don’t create more Bitcoin. The only way you get more Bitcoin… There’s no big supply response. The rate of mining creation is not going up because the price doubles or triples or quadruples, it just doesn’t go up. You have to get people who currently own it to sell it at a higher price. So you could see some type of massive move.
I assign a 25% probability of that. I think there’s probably a 50% probability that say, with Bitcoin, that over the next five years, we’re like between $50,000 to $75,000 and $250,000 and we’re just like swinging around.”
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/wacomka
